Landlord Refunded Overcharge Amount Before Order Issued

(Decision submitted by Patrick Munson of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. The DRA ruled for tenant and ordered a refund with triple damages, based on a finding that the overcharge was willful. Landlord appealed, pointing out that it had refunded the overcharge and reduced tenant's rent voluntarily before the DRA issued its order. The DHCR ruled for landlord. Landlord had complied with DHCR Policy Statement 89-2 by making the refund and rent reduction within the time granted by the DHCR to answer tenant's complaint. Under DHCR's policy, triple damages wouldn't be imposed under those conditions.

449 W. 56th Assocs.: DHCR Adm. Rev. Dckt. No. GD410070RO (12/4/98) [3-pg. doc.]